Scotland’s annual livestock profitability survey has shown improved profitability at the farmgate, despite rising input costs.
Date:
Tue, 15 Nov 2011
Source:
QMS
The results of the 2010 Scottish calf and lamb crop year survey, to be published tomorrow at AgriScot, continue to underline the importance of technical performance in helping to protect margins against fluctuating input costs and take full advantage of stronger farmgate prices.
The survey covers 68 breeding ewe enterprises farming 39,000 ewes and 110 suckler cattle enterprises farming 9,740 suckler cows, 12 enterprises finishing almost 3,000 store lambs and 47 cattle finishing enterprises selling just over 3,000 prime cattle. Four percent of the suckler herds and 4% of the ewe flocks surveyed were farmed to organic standards.
The survey provides a snapshot of the industry during 2010, and offers a fully audited benchmark for farmers to judge their own performance and see where they can improve.
Top producers generally obtain high physical, or technical, performance from their livestock, have strong control over costs and market their stock intelligently to maximise returns from the market place.
Across suckler herds, those in the top-third of gross margin per animal achieved higher output through a 3% improvement in calves reared per 100 cows, selling calves typically 25kg heavier while using significantly less concentrate feed per cow.
Improved performance and strong cost control means that across the suckler herds surveyed, variable costs per kg of calf reared were typically some 23% lower than the average among the top-third. With the exception of the upland herds selling yearlings, fixed costs per kg of calf reared were also less than the average among the top-third.
Those in the top-third of sheep producers similarly achieved higher stock performance; between 10% and 20% more lambs reared per 100 ewes and, with the exception of lowland flocks where lamb weights were little different, those in the top-third typically sold their lambs 2 kg heavier than the average.
Stuart Ashworth, Head of Economics at Quality Meat Scotland, said: “While the increased prices have helped all producers improve their profitability, or in many cases before subsidy, decrease their losses; it is those concentrating on increasing performance that are in the perfect place to take advantage.
“Across all enterprises, hill or lowground, the top performers have better physical performance levels.
“They put more calves on the ground, take them to better weights and achieve better prices, all while using less concentrate feed and fertiliser. This is where the real skill in achieving profitability lies.”
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